PorknBeanz
03-03-2013, 10:42 AM
Hi!
I was an employee of a company in California and was a California resident. In July 2012 I moved to Virginia and the company allowed me to telecommute. In October 2012, the company decided to relocate to Taiwan. I signed an independent contractor agreement. I bill them for my work and expenses, and they wire funds from Taiwan into my personal checking account. They don't give me a 1099 or any other documentation. I have one other client (US), but they only account for about 1% of my income. They provide a 1099. I sit in front of a computer all day and my primary client covers all my expenses.
For 2012 I included my contractor income on a Schedule C. I pay a lot in taxes with this set up (income is about $15k/mo). I think an s-corp would allow me to keep more of my income. Any advice? If I do an s-corp, is there any advantage to incorporating in a low tax/fee state like Nevada or Wyoming instead of my residence state of Virginia? Thanks for your help.
I was an employee of a company in California and was a California resident. In July 2012 I moved to Virginia and the company allowed me to telecommute. In October 2012, the company decided to relocate to Taiwan. I signed an independent contractor agreement. I bill them for my work and expenses, and they wire funds from Taiwan into my personal checking account. They don't give me a 1099 or any other documentation. I have one other client (US), but they only account for about 1% of my income. They provide a 1099. I sit in front of a computer all day and my primary client covers all my expenses.
For 2012 I included my contractor income on a Schedule C. I pay a lot in taxes with this set up (income is about $15k/mo). I think an s-corp would allow me to keep more of my income. Any advice? If I do an s-corp, is there any advantage to incorporating in a low tax/fee state like Nevada or Wyoming instead of my residence state of Virginia? Thanks for your help.